In light of a foreign investor expressing interest, while also noting opportunities for profitability at the Skeldon Estate, the Guyana Agricultural and General Workers Union (GAWU) has questioned the competence of management at the Guyana Sugar Corporation (GuySuCo) to sustain the sugar industry.
On Wednesday, the Union disclosed that there are major weaknesses in the Sugar Corporation’s current management and called for urgent reforms.
This comment comes in light of an Indian firm officially informing Government of its interest to invest in the cash-strapped estates.
The protest outside the Wales Estate grew on Tuesday as workers continue to demand their severance payments
GAWU said that it is “noteworthy” that the investor advised that in a short period it would make the estate profitable, which was a departure from GuySuCo’s recent contention that Skeldon was a “ticking time bomb” requiring an astronomical sum to be put right.
The Union highlighted also that the investor, which is seeking to have control of the co-generation plants and is desirous of setting up of a refinery to tap into the lucrative Caribbean market was a direction “recommended” by the Commission of Inquiry (CoI) into the sugar industry.
GAWU President Komal Chand
“We believe such a move will see the industry benefiting from higher revenues which would be in the interest of the industry and the thousands linked to its operations. The situation calls for our active vigilance,” GAWU posited.
“We urge the Administration to consider carefully the ramifications of the decision in this regard and the consequences for our economy and most of all our people,” the Union further stated.
The Indian firm was introduced to Government by Tony Joseph, the son-in-law of Prime Minister Moses Nagamootoo.
In a letter to Agriculture Minister Noel Holder dated January 27, 2017, Shrinath Ispat Limited said it wanted to take over the management and operations of the entire estate including sugar manufacturing and cogeneration of power divisions.
“We intend to put our equity as investment required for modernisation of the plant to operate smoothly and profitably and also for the working capital whereas the existing assets including plant and machinery would be as equity of GuySuCo,” the company stated in its letter.
The company had expressed gratitude to the Government and the Sugar Corporation for giving its delegation an opportunity to visit all six of the sugar estates and it also promised to provide a more detailed plan for takeover if the proposal piques Government’s interest. However, a conflict loomed as D Rampersad and Company Limited (DRCL), a Trinidadian firm, had already indicated its interest to invest in the Skeldon Estate. The company signed a Memorandum of Understanding (MoU) with the Guyana Office for Investment (Go-Invest) on behalf of the Government for the undertaking of a feasibility study. This feasibility study is proposed to commence on April 3 and to be completed in the first quarter of the year.
Meantime the sugar workers attached to the Wales Estate, West Bank Demerara, continued their third day of protest voicing their displeasure against GuySuCo’s nonpayment of severance packages. It was expected that sometime this week 420 workers would be involved in engagements on the Corporation’s proposals. To garner an insight on the state of workers’ future, Guyana Times sought an update from GuySuCo’s Financial Director, Paul Bhim but several calls to his mobile number late Wednesday went unanswered.
In early 2016, Guyana Times broke the news of Government’s intention to close the Wales factory. It was later disclosed that rice would be planted as part of the diversification plan but it remains unclear when the first rice crop will be reaped.
